Explanation
Background: Ordinance Number 1416-2007 passed October 1, 2007 authorizing the Public Utilities Director to enter into an agreement with the Ohio Department of Transportation (ODOT) for the Harrisburg Pike Water Line Improvements Project. This project will reconstruct Harrisburg Pike (U.S. Route 62) and install a new twenty-four (24) inch water main. ODOT has delayed the bidding for construction from the first quarter of 2008. Since they require payment before advertising for construction bids, the Department of Public Utilities legislated $1,800,000.00 but paid $1,481,270.00 to them in March 2008. The remaining $318,730.00 is still on AC-027606.
Since ODOT has delayed bidding this project several times, costs have now increased. Therefore, the Division of Power and Water is authorizing and directing the City Auditor to increase AC-027606 by $102,580.00.
1. Amount of additional funds to be expended: $102,580.00
Original Contract Amount: $1,481,270.00
Amount of original contract and this modification: $1,902,580.00
2. Reasons additional goods/services could not be foreseen:
ODOT repeatedly delayed bidding construction and project costs increased.
3. Reason other procurement processes are not used:
When the Division of Power and Water realized ODOT was going to make improvements to the roadway in the same area, the Division decided to pay ODOT's engineer to design the water line improvements and to include it in their contract.
4. How cost of modification was determined:
The City pays an estimated amount as prepared by the Ohio Department of Transportation, Office of Estimating; that the total cost and expenses of the project are only an estimate and may be adjusted by the State. The latest figure was provided by said office.
FISCAL IMPACT: This legislation includes a transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund as a temporary measure until such time as the proceeds from a bond sale can be made available. The cost of construction for this project is estimated at $1,902,580.00. Once the project is complete, any remaining funds will be returned to the City.
Title
To authorize the Public Utilities Director to modify and increase the agreement with the Director of the Ohio Department of Transportation for the Harrisburg Pike Water Line Improvements Project; to authorize the appropriation and transfer of $29,576.11 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; and to authorize the expenditure of $102,580.00 from the Water Works Enlargement Voted Bonds Fund; for the Division of Power and Water. ($102,580.00)
Body
WHEREAS, Ordinance Number 1416-2007 passed October 1, 2007 authorizing the Public Utilities Director to enter into an agreement with the Ohio Department of Transportation (ODOT) for the Harrisburg Pike Water Line Improvements Project; and
WHEREAS, project costs have increased due to ODOT delaying the construction of the project and is requesting additional funds from the Division of Power and Water; and
WHEREAS, $318,730.00 is remaining on AC-027606 from the original legislation; and
WHEREAS, the Division of Power and Water is authorizing an expenditure of $102,580.00 for these additional project costs; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the Project described in this Ordinance (collectively, the "Project"); and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power and Water; to authorize the Public Utilities Director to modify and increase the agreement with the Director of the Ohio Department of Transportation for increased costs for the Harrisburg Pike Water Line Improvements Project; for the preservation of the public health, peace, property, and safety; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Public Utilities Director is hereby authorized and directed to modify and increase the agreement with the Ohio Department of Transportation (ODOT) for the Harrisburg Pike Water Line Improvements Project in the amount of $102,580.00.
SECTION 2. That from the unappropriated monies in the Water System Reserve Fund, and from all monies estimated to come into said fund from any and all sources, and unappropriated for any other purpose during the fiscal year ending December 31, 2009, the sum of $29,576.11, is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 3. That the City Auditor is hereby authorized and directed to transfer $29,576.11, from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the appropriate project account as specified within Section 4 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That for the purpose of paying the cost of the contract modification the expenditure of $102,580.00, or so much thereof as may be necessary, for the Harrisburg Pike Water Line Improvements Project, to be expended as follows: Division of Power and Water, Dept./Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Project 690236, OCA Code 642900, Object Level One 06, Object Level Three 6629, and the fiscal officer is hereby authorized and directed to issue an order on the treasurer for said sum upon the requisition of the Director of the Ohio Department of Transportation to pay the cost and expense of said improvement.
SECTION 5. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water System Reserve Fund the amount transferred under Section 3 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
SECTION 7. That the City intends that this Ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $29,576.11 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the Water System Reserve Fund 603, which is the fund from which the advance for costs of the Project will be made.
SECTION 8. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.